Dow Jones Industrial Average Tanks; Bonds, IMF in Focus

Traders Dump Stocks, Bonds Ahead of Big Day; Plus, M&A Mania

Jun 4, 2015 at 11:44 AM
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The Dow Jones Industrial Average (DJIA) continues to the feel the weight of recent bond market turmoil -- both in the U.S. and Europe -- and uncertainty surrounding Greece's ticking clock. Meanwhile, weekly jobless claims fell further than expected -- ahead of tomorrow's highly anticipated nonfarm payrolls report -- but labor productivity took a sharper-than-forecast plunge. Elsewhere, the International Monetary Fund (IMF) encouraged the Fed to delay its planned interest-rate hike until early 2016, to "provide valuable insurance against the risk of disinflation, policy reversal, and ending back at zero policy rates." However, while the IMF suggestion initially helped the major indexes fight their way back to breakeven, the scales quickly tipped back to the bears' favor. 

 

Continue reading for more on today's market -- and don't miss:

 

  • 3 stocks in the M&A crosshairs.
  • Why FireEye Inc (NASDAQ:FEYE) raced to a new annual high this morning, while this commodity concern keeps flirting with multi-year lows.
  • Plus ... Checking in on the CBOE Volatility Index (VIX), the SPDR S&P 500 ETF Trust (SPY), and other noteworthy stats at midday.

 

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Among the stocks with notable call volume is Wynn Resorts, Limited (NASDAQ:WYNN), with the contracts running at five times the average intraday pace. Shares of the casino operator were last seen 5.5% higher at $107.68, and option traders are betting on further gains through tomorrow's close. Specifically, speculators are buying to open WYNN's weekly 6/5 110-strike call.

 

The worst loser on the Big Board is Molycorp Inc (NYSE:MCP), which has plunged 23.1% to $0.32, on reports the rare earths firm will file for bankruptcy later this month. MCP has lost 88% of its value over the last year.

 

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Among the leading winners on the Big Board is T-Mobile US Inc (NYSE:TMUS), which is rallying on M&A rumblings. At last check, the telecom stock was up 5% at $40.25, and fresh off a nearly seven-year high of $40.77.

 

The CBOE Volatility Index (VIX) is up nearly 1 point, or 7%, at 14.61.

 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 2.45, with puts more than doubling calls. SPY was last seen down 1.3 points, or 0.6%, at $210.62.


 

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